It's Unlikely That Dalmia Bharat Limited's (NSE:DALBHARAT) CEO Will See A Huge Pay Rise This Year

Key Insights

• Dalmia Bharat will host its Annual General Meeting on 30th of June
• Total pay for CEO Puneet Dalmia includes ₹199.7m salary
• Total compensation is 146% above industry average
• Dalmia Bharat's total shareholder return over the past three years was 61% while its EPS was down 5.5% over the past three years

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Dalmia Bharat Limited (NSE:DALBHARAT) has exhibited strong share price growth in the past few years. However, its earnings growth has not kept up, suggesting that there may be something amiss. Some of these issues will occupy shareholders' minds as the AGM rolls around on 30th of June. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. From the data that we gathered, we think that shareholders should hold off on a raise on CEO compensation until performance starts to show some improvement.

Check out our latest analysis for Dalmia Bharat

How Does Total Compensation For Puneet Dalmia Compare With Other Companies In The Industry?

At the time of writing, our data shows that Dalmia Bharat Limited has a market capitalization of ₹389b, and reported total annual CEO compensation of ₹214m for the year to March 2025. We note that's a decrease of 8.2% compared to last year. Notably, the salary which is ₹199.7m, represents most of the total compensation being paid.

For comparison, other companies in the Indian Basic Materials industry with market capitalizations ranging between ₹174b and ₹555b had a median total CEO compensation of ₹87m. Hence, we can conclude that Puneet Dalmia is remunerated higher than the industry median.

Speaking on an industry level, nearly 86% of total compensation represents salary, while the remainder of 14% is other remuneration. Our data reveals that Dalmia Bharat allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Dalmia Bharat Limited's Growth

Over the last three years, Dalmia Bharat Limited has shrunk its earnings per share by 5.5% per year. In the last year, its revenue is down 4.8%.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Dalmia Bharat Limited Been A Good Investment?

Boasting a total shareholder return of 61% over three years, Dalmia Bharat Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Although shareholders would be quite happy with the returns they have earned on their initial investment, earnings have failed to grow and this could mean returns may be hard to keep up. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Dalmia Bharat that investors should look into moving forward.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.